Foreign Representative Office

For foreign investors newly entering the China market, setting up a foreign representative office is relatively a good bridge. The examination and approval procedure for a representative office is simple, without requiring registered capital. But a representative office cannot carry out operating activities directly; in fact, it can only carry out business liaisons, product introduction, market research and technical exchange on behalf of an offshore company within the scope of their operations. A representative office does not qualify as a legal entity, so its civil liability shall be undertaken by the offshore company it represents.

Requirements for Incorporation

• The foreign enterprise shall be registered lawfully in its host country
• The foreign enterprise shall be established for two years or above in its host country
• The foreign enterprise shall have sound goodwill
• The foreign enterprise operates in a fixed location
• The foreign enterprise shall appoint a chief representative
• The foreign enterprise may appoint one to three representatives according to its business needs.

Name of Representative Office

• Country/Region Name+Company Name+(in proposed district) Representative Office
• For example, Hong Kong Zhipeng Development Co., Ltd. (Shenzhen) Representative Office

Required Documents and Time

• Proof of domicile and a legal certificate of business subsisted for two years or above of the foreign enterprise
• Memorandum or organization agreement of the foreign enterprise
• Appointment letters of the chief representative or representatives of the foreign enterprise
• Documents of Identitification and curricula vitae of the chief representative and representatives
• Proof of creditworthiness issued by financial institutions having business relationship with foreign enterprises
• Certificate of legal right of use of the premises of the representative office

Subseuent Formalities of Representative Office

The representative office shall submit its annual report to the registration authority in the period from 1 March to 30 June every year. The annual report shall cover the legal status of existence of the foreign enterprise, the business activities of the representative office and its income and expenses audited by a firm of certified public accountants.

Taxes and Fees involved in the Operation of Foreign Representative Office

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